Swiber fallout continues to dominate Singapore offshore markets

Swiber fallout continues to dominate Singapore offshore markets

Offshore developments around Singapore continue to focus on the downfall of Swiber Holdings which crashed spectacularly two weeks ago and has sought judicial management.

OSV operator Pacific Radiance has admitted its exposure to Swiber will hit its balance sheet by around $10m. The company said in a statement it “will continue to pursue all legal avenues of recovery of the doubtful receivables”.

Pacific Radiance said it was making financial arrrangements to tide itself over during the protracted offshore slump. “Some of the key steps include the refinancing of loans with its key lenders, and the amendment of a financial covenant of its sole S$100m bond issue due August 2018 to avoid any technical breaches,” it said.

Numerous analysts have warned Swiber’s downfall could be the first of many among the Singapore offshore community.

Meanwhile, Luxembourg’s GE-PK AirFinance has become the first company to seize a Swiber-linked vessel as it chases debts. The nine-year-old Swiber Valiant AHTS has been arrested in Singapore as GE-PK AirFinance seeks repayments worth $17m from Swiber.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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